The short answer
Repairs before the first let are allowable if the property was usable when you bought it. If it wasn't fit to let and the price was lower because of that, the work is capital.
The like-for-like part is a revenue cost that reduces your rental profit. Any improvement element is capital: it gets no income tax relief but is added to the property's cost when you work out Capital Gains Tax.
What you can and can't claim
| You can claim | You can't claim |
|---|---|
| Redecorating and repairing a usable property before the first tenant | Making an uninhabitable property habitable |
| Costs up to 7 years before letting starts, treated as incurred on the first day | Extensions, conversions and improvements |
Worked example
You buy a dated but liveable house and spend £6,000 on repairs before letting. That's allowable when the letting starts. The same work on a house with no working kitchen or bathroom could be capital.
| Your tax band | Saving 2026/27 | Saving 2027/28 |
|---|---|---|
| Basic rate | £1,200 | £1,440 |
| Higher rate | £2,400 | £2,640 |
| Additional rate | £2,700 | £2,940 |
Savings assume the whole amount is taxed at your top rate. Use the landlord tax calculator for your exact figure.
Where it goes on your tax return
On the UK property pages (SA105), enter it in box 25 (property repairs and maintenance). Online, it's the matching question in the property section. Our SA105 helper sorts all your costs into the right boxes.
Repair or improvement: how HMRC decides
A repair restores something to its previous condition, even if modern materials make it a bit better. An improvement adds something new or makes it significantly better, and is capital. Timing also matters from 2027: a cost paid before 6 April 2027 saves tax at 20%/40%/45%, after that at 24%/44%/49%. See all landlord expenses A to Z.
Frequently asked questions
Can I claim refurbishment costs before renting out a property?
Yes, if they're repairs to a usable property. Work to make an unusable property fit to let is capital.
Which year do I claim them in?
Pre-letting costs from up to 7 years before are treated as paid on the day the letting starts.
Sources
- GOV.UK: Work out your rental income when you let property
- HMRC: UK property notes (SA105 Notes 2025)
- HMRC Property Income Manual: repairs, replacements and allowable costs
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.